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Glossary Variant Management

Configuration

n. (kən-ˌfi-gyə-ˈrā-shən)
Definition

Configuration has three distinct meanings in PLM: variant configuration, configuration management, and parameterization — each describing a different kind of joining.

Updated
15 May 2026

The word configuration comes from the Latin con- (“together”) and figurare (“to shape” or “to form”). A configuration is therefore something formed by joining — the process of assembling parts into a coherent whole.

In the context of PLM and variant management, the term is used in three distinct ways, and confusing them is one of the most common sources of miscommunication in product development projects.

Three meanings of configuration

1. Variant configuration

Variant configuration refers to the selection of product options to define a specific product variant. A customer or sales representative chooses from available features — engine type, color, upholstery, accessories — and the result is a valid product specification.

This is the meaning most associated with product configurators and CPQ CPQ – Configure, Price, Quote (ˌsē-ˌpē-ˈkyü) n. abbr. CPQ stands for Configure, Price, Quote — software that automates sales quoting for configurable products by enforcing product rules, calculating pricing, and generating output. software. The underlying methods — additive configuration Additive Configuration (ˈa-di-tiv kən-ˌfi-gyə-ˈrā-shən) n. Additive configuration is a method for creating product variants by combining modules via standardized interfaces. Learn its role in variant management. , subtractive configuration Subtractive Configuration (səb-ˈtrak-tiv kən-ˌfi-gyə-ˈrā-shən) n. Subtractive configuration starts from a 150% BOM containing all possible options and removes components not needed for a specific variant. Common in automotive and ERP. , and parametric configuration Parametric Configuration (ˌper-ə-ˈme-trik kən-ˌfi-gyə-ˈrā-shən) n. Parametric configuration defines product variants through adjustable parameters like dimensions and geometry, rather than selecting from a fixed set of discrete options. — describe how variants are technically derived from the product model.

2. Configuration management

Configuration management Configuration Management (kən-ˌfi-gyə-ˈrā-shən ˈma-nij-mənt) n. Configuration management is the systematic process of tracking and controlling changes to a product or system across its lifecycle in PLM and engineering. refers to the systematic process of tracking and controlling changes to a product or system across its lifecycle. It ensures that every component, document, and process remains consistent and traceable — and that no uncoordinated change breaks something downstream.

This meaning is dominant in engineering and software development. Configuration management answers questions like: “What is the exact specification of this product version?” and “Who authorized this change, and when?“

3. Configuration as parameterization

In software and IT contexts, “configuration” often means parameterization — adjusting settings, variables, or preferences to tune the behavior of a system. Configuring a server, a database connection, or a software application falls into this category.

This meaning is largely disconnected from variant management in manufacturing but is the dominant one in IT departments — which creates friction in cross-functional discussions.

Why the distinction matters

In project meetings, “configuration” is often used without qualification. A product manager discussing variant configuration, a systems engineer referring to configuration management, and an IT architect thinking about parameterization may all use the same word to mean entirely different things. Making the intended meaning explicit avoids significant confusion.

Note: In this glossary, “configuration” without further qualification typically refers to variant configuration — the process of selecting and combining product options to define a specific variant.

Frequently asked questions

What is the difference between configuration and configuration management?

Variant configuration is about selecting options to define a product variant — it answers “what does this specific product look like?” Configuration management is about tracking and controlling changes to a product over its lifecycle — it answers “what is the authorized state of this product, and how did it get there?” The two concepts are related but serve different purposes.

What is a product configurator?

A product configurator is a software tool that guides users through the process of variant configuration. It enforces the rules defined in the product model — for example using Boolean algebra Boolean Algebra (ˈbü-lē-ən ˈal-ji-brə) n. Boolean algebra provides the logical operators (AND, OR, NOT) used to define valid product configurations and constraints in variant management and CPQ. constraints — and produces a valid product specification. Configurators are often integrated with CPQ CPQ – Configure, Price, Quote (ˌsē-ˌpē-ˈkyü) n. abbr. CPQ stands for Configure, Price, Quote — software that automates sales quoting for configurable products by enforcing product rules, calculating pricing, and generating output. systems in the sales process.

Related article

The Different Meanings of "Configuration"

Configuration means different things to different people: variant selection, baseline management, or software parameters. Here is how to tell them apart.